Which of the following costs will tend to increase if a firm switches to a restrictive short-term financial policy from a flexible short-term policy? Lost sales due to out of stock Items II Inventory warehousing costs III Cash-outs IV Total annual order costs O AI and III only B. Il and IV only O CI, II, III, and IV D. I, III and IV only E. I, II, and IV only QUESTION 10 A flexible short-term financial policy will tend to have more of which of the following than a restrictive short-term financial policy will? 1 Uncollectable accounts receivable II. Work stoppages for lack of raw materials III. Carrying costs IV. Obsolete or out-of-date inventory OA. IIII, and IV only OB. I, II, and Ill only OCI and II only OD. III and IV only E. Il and Ill only QUESTIONS Manama-City Grocers is a chain of grocery stores that just hired a new CFO Which of the following actions would you expect this CFO to adopt given her statement that she wants to implement a more flexible financing policy for the firm? 1 Easing the credit terms given to customers 11. Increasing the amount of inventory carried by each grocery store III Borrowing funds to keep more cash available for store operations IV. Decreasing the firms investments in marketable securities O A I. II and Ill only OB. I and ill only OC III and IV only O D. II and IV only O E. I, II, III and IV